Tanzania was the word in the mining world this week as the recent changes to the country's legislation surrounding the industry bought out a flurry of comments and statements.
On Monday, Capital Drilling PLC (LON:CAPD) reported a strong recovery in activity in its latest quarter but cautioned over the uncertainty in Tanzania due to the recent changes legislation.
The mining driller has a contract with Acacia Mining (LON:ACA) at North Mara in Tanzania.
READ: Good results from Capital Drilling overshadowed by Tanzania uncertainty
Jamie Boyton, Capital’s executive chairman, said the legal changes in the country had added more uncertainty to the outlook for the second half.
For the second quarter, Capital Drilling’s revenues in the second rose by 26% over the previous year to US$30.7mln, but were slightly below the previous three months.
Tanzanian President John Magufuli signed into law the new mining bills on Monday that were passed by parliament last week.
The bills require the government to own at least a 16% stake in mining projects, give them the power tear up and renegotiate contracts for natural resources, and remove the right to international arbitration.
The government has also approved a new Finance Act, which will impose a 1% clearing fee on all minerals exports.
On Friday, Acacia Mining said it will swallow the tightened legislation in Tanzania by agreeing to pay extra royalties tax on the exports of gold and other minerals.
Acacia had previously said it was losing about US$1bn a day in revenue after the government imposed a ban on the exports of gold/ copper concentrate from its two mines in the country.
Kibo sees no identified adverse impact on Mbeya Coal to Power Project
But Kibo Mining PLC (LON:KIBO) said that, following a week of follow-up meetings with government departments and other Tanzanian stakeholders regarding the further development of its Mbeya Coal to Power Project (MCPP) there is no identified adverse impact on the development as a result of recent changes in the legislative environment.
The Tanzania-focused mineral exploration and development group reiterated that the completion of the Mbeya Coal special mining right application remains on schedule as does the environmental certification of the Mbeya Coal Mine and Mbeya Power Plant.
Louis Coetzee, Kibo’s CEO, said: "As stated before it is business as usual for Kibo, while we continue to study the latest amendments to the mining act to understand any possible impact these may have on Kibo and its projects. We will continue to keep the market updated".
Away from Tanzanian lithium exploration was also a focus this week. Thor Mining PLC (LON:THR) saw its shares gain on Thursday on news it had completed the acquisition of a 25% stake in US Lithium Pty Limited, a private Australian company with interests in lithium-focused projects in Arizona and New Mexico.
In addition to the US$75,000 purchase price, Thor has also contributed A$50,000 to US Lithium to cover the exploration programme, which is now expected to be fully funded for the next three months. The stake purchase was first announced on June 14.
Savannah Resources raises cash for lithium project
Meanwhile, Savannah Resources Plc (LON:SAV) revealed on Monday that it has raised around £1.3mln before expenses to fund work on its projects, including its Portuguese lithium mine, with the subscription backed by its largest shareholder, Al Marjan Ltd which will increase its holding to just under 30%.
The firm said the net proceeds of the subscription will be used by Savannah to fund work on its Portuguese lithium projects, to advance the Mutamba Project joint venture with Rio Tinto in Mozambique, and further work on the Oman Copper-Gold Project, as well as for general working capital purposes.
Elsewhere, Cadence Minerals Plc (LON:KDNC) took a major step closer to becoming a significant player in the world’s burgeoning cobalt market on 3 July, when it elected to acquire an initial 10% direct interest in the Leogang project in Austria in an all-share deal.
The acquisition follows the signing of a memorandum of understanding last month with the Australian owner of Leogang, Clancy Exploration Limited (ASX:CLY).
Cadence’s chief executive Kiran Morzaria sets the company’s move into cobalt in the context of the number of new electric vehicles that are likely to flood onto global markets in the coming decades, all requiring cobalt for their batteries.
Chrome production for Tharisa at record
Tharisa PLC (LON:THA) notched a up another quarter of record production at its mine in South Africa with rising output of specialty chrome concentrates, which attract a premium price.
A record 1.275mln tonnes was mined in the three months to June leading to chrome concentrate production hitting a new quarterly high at 334,000t, a 6.1% quarter on quarter increase.
WATCH:Tharisa notches up another record quarter of production
Closer to home, it was all systems go at Galantas Gold Corporation (LON:GAL) (CVE:GAL), now that underground development work at the Omagh gold mine has started.
Progress is going well, with the development tunnel advanced by approximately 47m from the underground portal, it said in July.
The Ulster-based miner said plans are in hand to increase the blasting frequency, while a narrow vein of gold shooting off from the Kearney system has also been intercepted as expected.
Gold miners a focus
Staying with gold, Xtract Resources PLC (LON:XTR) shares jumped more than 60% on Tuesday after it told investors that the group’s Mozambique subsidiary, Explorator Limitada, has signed a second mining contractor agreement for the Manica gold project.
The arrangement with Sino Minerals Investment Company has been hired to mine the eastern half of the alluvial interest in the Manica concession, Xtract said.
And Greatland Gold plc (LON:GGP) is launching a new exploration programme at the Eastern tenements of its Ernest Giles gold project in western Australia.
The area has virtually not been subject to historical exploration and the exploration programme will include Mobile Metal Ion surface geochemistry, broad-spaced gravity traverses and geological field reconnaissance.
The results of the exploration programme are expected by September 2017.